BILL ANALYSIS AB 1441 Page 1 Date of Hearing: May 4, 2009 ASSEMBLY COMMITTEE ON NATURAL RESOURCES Nancy Skinner, Chair AB 1441 (Committee on Agriculture) - As Introduced: February 27, 2009 SUBJECT : Williamson Act: lot line adjustments SUMMARY : Extends the sunset, from January 1, 2010 to January 1, 2011, of a provision that allows a city or county and a landowner to mutually agree to simultaneously rescind a Williamson Act contract and enter into a new contract to facilitate lot line adjustments. EXISTING LAW : Pursuant to the California Land Conservation Act of 1965 (Williamson Act, Chapter 1443, Statutes of 1965): 1)Authorizes a city or county and a landowner to mutually agree to simultaneously rescind a Williamson Act (Act) contract and enter into a new contract to facilitate lot line adjustments if a city council or board of supervisors finds all of the following: a) The new contract or contracts would enforceably restrict the adjusted boundaries of the parcel for an initial term for at least as long as the unexpired term of the rescinded contract or contracts, but for not less than 10 years. b) There is no net decrease in the amount of the acreage restricted. c) At least 90 percent of the land under the former contract or contracts remains under the new contract or contracts. d) After the lot line adjustment, the parcels of land subject to contract will be large enough to sustain their agricultural use. e) The lot line adjustment would not compromise the long-term agricultural productivity of the parcel or other agricultural lands subject to a contract or contracts. f) The lot line adjustment is not likely to result in the AB 1441 Page 2 removal of adjacent land from agricultural use. g) The lot line adjustment does not result in a greater number of developable parcels than existed prior to the adjustment, or an adjusted lot that is inconsistent with the general plan. 2)Required the Department of Conservation (DOC) to review the performance of the above provision in a bi-annual report due in 2008. 3)Sunsets the above provision in January 1, 2010. FISCAL EFFECT : Unknown COMMENTS : The Williamson Act (Act) conserves agricultural lands and open space by allowing landowner to voluntarily enter into a contract with cities and counties, restricting their land to agriculture, open space, and compatible uses for 10 years in exchange for lower property tax assessments. The contracts automatically renew each year so that the term is always 10 years in the future. A landowner may cancel or not renew a contract under specific conditions. This bill allows landowners to make minor lot line adjustments (LLA) without resorting to canceling or non-renewing a Williamson Act contract. According to DOC, who administers the Act, the LLA provisions are: [A] very useful tool for landowners and local agencies. The ability of landowners to adjust the boundaries of their properties is often necessary given the requirements of agricultural financing, migration of natural boundaries, and intra-family property transfers. Absent a statutory mechanism that explicitly authorizes and guides LLA?the practical necessity to do so may induce some landowners to utilize extra legal methods that may create uncertainty in property rights. Unless the sunset date is extended or deleted, there will be no efficient, direct means to make minor boundary adjustments?after January 1, 2010. Landowners may also choose to non-renew or remove land from a contract as the only way to adjust parcel boundaries. DOC AB 1441 Page 3 believes that this could result in "unnecessary and regrettable conversion of agricultural land to other uses. Previous legislation AB 2921 (Laird), Statutes 2008, Chapter 503 attempted to reform the Act's LLAs mechanism in a comprehensive fashion, thereby eliminating the sunset. However, the Senate Local Government Committee chose to defer action on LLAs until DOC submits its report to the Legislature on the subject. In the interim, it is appropriate to continue extending the sunset. REGISTERED SUPPORT / OPPOSITION : Support None on file Opposition None on file Analysis Prepared by : Dan Chia / NAT. RES. / (916) 319-2092